As a result, Brazil’s Gross Domestic Product (GDP) grew 4.6% in 2021, recovering from a record contraction in 2020as vaccinations helped ease the impact of the COVID-19 pandemic and government spending helped boost activity.
Although growth for the full year was lower than the official forecast for the Ministry of Economy of 5.1%, represented a strong rebound compared to the fall of 3.9% in 2021, when the pandemic took its toll on the largest economy in Latin America.
However, Double-digit inflation has prompted Brazil’s central bank to hike interest rates aggressivelythreatening to stifle the recovery ahead of elections in October, when President Jair Bolsonaro is expected to seek a second term.
Fourth-quarter growth was led by agriculture, with an improvement of 5.8%, while the services sector grew 0.5% and industry contracted 1.2%, the IBGE said. The positive overall result compared to the previous three months came after declines of 0.1% in the third quarter and 0.3% in the second.
In the year, the services sector rose by 4.7% and industry registered growth of 4.5%, while agriculture fell by 0.2%, affected by prolonged drought and frost.
The IBGE statistics agency said economic activity is still 2.8% below its peak in 2014.
Source: Ambito
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